Regulators in Cambodia require licensing any activity related to cryptocurrencies

19 June 2018

Any commercial activity related to cryptocurrencies requires obtaining a license from the authorities in Cambodia from now on, as the National Bank of Cambodia (NBC), the Securities and Exchange Commission of Cambodia and the General-Commissariat of National Police published a joint statement this week, which had been signed earlier in May.

According to the published document, the decision was taken after complete review and analysis of the situation around the cryptocurrency trading increase across the nation. Under the shelter of concerns over the risks brought by the cryptocurrency trading, the regulators said that any efforts to distribute, purchase, sell, trade and make settlements using cryptocurrencies without a valid license will be deemed as illegal. Besides, the statement adds that such actions in breach of the licensing requirement will be penalized under the current legislation.

It is currently not clear what kind of a license should be obtained by the interested parties and what the procedure of filing includes, what is required for a successful registration, but it is obvious that the new rule will discourage investors.

The regulators further add that activity associated with the cryptocurrencies may end up in the risks coming from the volatility typical for cryptocurrency price, as well as no consumer protection, referring to con tricks and Ponzi schemes, including OneCoin project, as a cogent argument in support of their position.